Flip Tip Summary
When you hear real estate investors talk about problems with contractors, it generally stemmed from lack of clear communication and expectation setting. In this FlipNerd.com Flip Tip, Mike Loughrey shares how to create a great working relationship with contractors.
Flip Tip Transcript:
Mike Hambright: Hey, it’s Mike Hambright from FlipNerd.com. We have a quick V.I.P. tip to share with you from my friend, Mike Lockery [SP], who’s going to share a tip today on how to create a great working relationship with contractors.
Mike Lockery: So I was just thinking as we were talking one of the most important things from a real estate investor is that a lot of times we’re so focused on what we need to get done and the time management of the project that we’re moving so quickly. That a lot of times we really forget to take a step back, and really just write down, and put it in writing that what we agree upon with our contractors, with our workers, as they’re going to these properties.
We run through the property, and we list off a lot of items that we need to get fixed. We kind of agree upon a price. A lot of times it’s real easy to say, okay, let’s go ahead and start. Well, a lot of times they’ll forget items. We’ll forget items. It’s really good to kind of recap. Put it on paper to be a one page document. You agree to this, this, and this, and this for this price. I agree to pay half up front, half at the end.
You sign it. They sign it. It just kind of helps everybody bring it back around, and remember what they’re agreeing to doing, and at what price they’re going to do it for. I think that’s a real good tip for all investors to kind of slow down, take the time. It will take you another two to three minutes to put this agreement together, and just put it in writing.
Mike Hambright: Thank you for joining us for another FlipNerd Flip Tip.
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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.